According to court papers, the defendants diverted payments to KRDM for flooring materials.

Instead of depositing those checks in the business' bank accounts, they cashed them at check-cashing shops, without reporting the money as gross receipts, said court documents.

D'Onofrio, 51, of Castleton Corners, and Taliercio, 49, of New Dorp, allegedly pocketed some of the money, and also paid some workers off-the-books.

Court filings said the duo understated the wages paid to their employees, along with the company's gross receipts, to avoid paying the appropriate FICA taxes. Such taxes are imposed on employers and employees to fund Social Security and Medicare.

The business reported more than $1.6 million in combined gross receipts for the 2005 through 2007 tax years, court records said.

The defendants paid just over $91,600 in FICA taxes on their business for the years 2005 through 2008. They owe an additional $606,000, court papers allege.

The company was incorporated in March 1991 and is currently active, online records of the New York Department of State show.

Each man faces up to five years in prison when sentenced Feb. 28, said prosecutors.

The lawyer representing D'Onofrio and Taliercio did not immediately return a telephone call Friday seeking comment.